Amazon has announced plans to transform the former Central Steel & Wire Plant at 3000 W. 51st St. in Gage Park into a new delivery station, but some local residents have voiced concerns about the project’s impact on their community.
The company presented its proposal during a public meeting attended by Amazon representatives, city officials, and about 75 neighborhood residents. The site was purchased by Amazon in 2021 for $35 million, and the new warehouse is expected to open in late 2027. According to Kyle DeGuilio, economic policy manager for Amazon’s midwestern division, the facility will cover 230,000 square feet and create 200 permanent jobs with starting wages of $21.50 per hour plus benefits.
DeGuilio explained that this location would function as a delivery station, where packages from larger fulfillment centers are sorted before being sent out to addresses within a 30-mile radius. The building will be smaller than the previous steel plant and set back from nearby streets with landscaping using native plants.
“We want this building to better serve customers in Chicago with package delivery,” said DeGuilio at the community meeting Tuesday. “But we’re not just trying to drop the site in the neighborhood. We really, truly want to be a community partner, and that’s why we’re here today.”
Despite these assurances, several neighbors expressed reservations about increased traffic from over 400 electric vans and 40 semi-trucks planned for the facility. They also raised concerns about potential negative effects on small businesses and questioned Amazon’s labor practices.
Dominick DiSilvio of American Demolition said demolition of the current plant could begin soon if city approvals are granted, taking around nine months without use of explosives and following dust mitigation protocols.
Once demolition starts, Amazon intends to seek permits through Chicago’s plan commission and City Council, aiming for construction to start in August after expected approval in July.
The topic of unionization was also discussed at the meeting. None of the facility’s employees will be unionized according to DeGuilio—a point met with criticism from attendees who cited past issues related to workplace safety and union organizing efforts at other Amazon sites.
An additional workforce of roughly 400 contracted drivers will operate out of this hub but without guaranteed pay or benefits equal to those received by direct Amazon employees.
Some residents advocated for greater investment in local amenities such as rebuilding or upgrading the area’s public library—which suffered storm damage last July—but DeGuilio responded: “For a public library, that’s not a decision for us to make.”
Local business owner Laura Lopez questioned whether another large warehouse would further strain small businesses already struggling nearby: “I just want to know how much more is this going to impact the small business community?” she asked. “You guys are hurting the small business community. I wish we could have done something for our children, our community, our teenagers. We need libraries … we don’t need another Amazon. We already had one.”
Amazon previously operated a warehouse nearby at 3507 W. 51st St., which closed because it was not specifically built for Amazon operations; workers there staged walkouts over working conditions in 2021 according to reports from Sun-Times.
Alderman Jeylu Guttierez (14th) encouraged constituents to remain engaged throughout construction planning: “It is important they engage with Amazon to help ease the construction process.”
Residents can send feedback directly via email at DIL2@amazon.com or contact their local ward office with questions or concerns.
